The oil price looks optimistic. What are the reasons?
Gold leaps in Asia as North Korea watched for fresh weapons tests
On Tuesday, gold added in Asia after sharp calls from America for the United Nations to impose much tougher sanctions on North Korea for its recent nuclear test of a hypothetical hydrogen bomb.
Gold rallied 0.80% in New York trading at $1,341.04 a troy ounce. Speculation has emerged that the isolated Asian country might dare to test an ICBM on September 9, its national holiday.
The China Caixin services PMI went up to 52.7, which is quite above the 51.8 level supposed. It’s because the private poll published on Tuesday disclosed, backing market sentiment of a consumer-led rebound.
The Caixin manufacturing PMI leapt to 51.6 in August, surpassing a 50.9 level expected, as Friday’s data disclosed, revealing the fastest tempo of new orders for three years.
Overnight, the precious commodity hovered at one-year maximums because fresh threats by North Korea bolstered worries over a potential conflict in the region and also spurred demand for safer assets.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.